NVIDIA Q4 Revenue Surges 73% to $68.1B; Morgan Stanley Raises Target to $260, Q1 Guidance Tops Estimates
NVIDIA reported FY2026 Q4 revenue of $68.1 billion, up 73% year-over-year and 20% quarter-over-quarter, setting a new record. Non-GAAP EPS was $1.62, beating consensus of $1.53. Data center revenue dominated at $62.3 billion (up 75% YoY), accounting for over 91% of total sales and driving full-year data center revenue of $193.7 billion (+68% YoY). Management highlighted the Blackwell (Grace Blackwell) inference platform paired with NVLink as the current leader in inference efficiency and previewed the next-generation Vera Rubin platform, which it says will reduce inference costs by another order of magnitude. NVIDIA guided FY2027 Q1 revenue to $78.0 billion (±2%), substantially above analysts’ consensus of $72.6 billion; non-GAAP gross margin was guided at ~75.0% (±50 bps) with operating expenses around $7.5 billion. Following the results, Morgan Stanley raised its price target from $250 to $260 and RBC lifted its target from $240 to $250, with both firms maintaining an Overweight/Outperform stance. Key takeaways for traders: exceptional AI-driven demand for GPUs is sustaining revenue growth and bullish forward guidance, likely supporting NVIDIA stock strength and positive sentiment across AI- and GPU-exposed sectors. Primary keywords: NVIDIA, Q4 revenue, data center, Blackwell, guidance, price target. Secondary keywords: Morgan Stanley, RBC, AI spending, inference costs, Vera Rubin.
Bullish
The report and forward guidance are strongly positive: record Q4 revenue (+73% YoY), dominant data center sales, and Q1 guidance ($78B) well above consensus point to continued acceleration in AI infrastructure spending. Analysts raising price targets (Morgan Stanley to $260, RBC to $250) reinforce bullish sentiment. For traders, expect near-term upside pressure on NVDA shares and correlated AI/GPU names as earnings beat and guidance typically trigger rotation into winners. Volatility may rise on earnings-driven flows and profit-taking, but the fundamental momentum is supportive for medium-term rallies. Historically, when NVIDIA reported large beats and raised guidance (e.g., prior AI-cycle quarters), the stock led sector outperformance and lifted hardware/AI-related equities and ETFs. Risks: high valuation, potential supply-side constraints, or a sudden slowdown in cloud AI capex could trigger corrections. Short-term: likely positive price reaction and increased volume. Long-term: sustained demand for AI accelerators supports continued revenue growth, making the structural outlook bullish for NVDA and suppliers/players exposed to AI compute.